A few months ago, when we did a lengthy Q&A with some insurance compliance experts, the main advice from said experts was that playing along with ACA rather than paying the penalties is likely the most cost-efficient for your business. But skepticism quickly arose in the comments section.
“Everyone talks about the plans that are available, but no one has shown an actual plan with coverages and premium schedules,” one read. “I would like to see some math on this using some sample data from a commercial staffing perspective,” another chimed in.
Fair enough, tell us what you think of these numbers:
They come to us from a staffing client of Assurance. The guidelines of ACA say it must be “acceptable” and “affordable.” In the case of these four cost estimates, they all run just above 60% actuarial value (the guideline for “acceptable”) and below 9.5% of employees’ average household income (the barrier for “affordable”).
Assurance Principal Clint Anderson, who was kind enough to send us the numbers, says each company’s data will vary based on factors like location and average age of employees.
“It typically ranges anywhere from $90 an employee to $240,” he said, adding that in this case the agency primarily staffs in the Midwest. “We’ve written about 60+ new staffing customers already this year, and most of them have already implemented ACA-compliant plans.”
We’ve also been told that the customer’s higher-ups said these estimates came in lower than originally anticipated, which was a pleasant surprise. But anyway, enough of my gabbin.’ You probably want to see the hard numbers. So here they are (and click on the photo to see a much bigger version):